The Competition Commission of India (CCI) has cleared Tata Power Company Ltd.’s purchase of 51% stake in North Eastern Electricity Supply Company of Odisha (NESCO Utility), the competition watchdog said in a statement on Friday.
Tata Power bought the utility form Grid Corporation of Odisha Ltd. in a competitive bidding initiated by the Odisha Electricity Regulatory Commission, the statement said. The clearance was given on Thursday, the statement said.
NESCO Utility, a more than two decade old entity, is distributing power in five districts of Odisha—Balasore, Bhadrak, Jajpur, Keonjhar and Baripada.
As per the transaction, Tata Power will hold 51% equity with management control and state-owned Grid Corporation of Odisha will hold the remaining 49% stake.
With this deal, Tata Power now can now serve the entire population of Odisha with nearly nine million consumers. This expansion will enhance Tata Power consumer base to nearly 12 million from 9.6 million across Mumbai, New Delhi, Ajmer, Central, Southern and Western parts of Odisha, Tata Power had said in a statement on 1 February.
The approval of the competition regulator is significant as CCI is empowered to suggest modifications to mergers and acquisitions where it sees any appreciable adverse effect on market competition.
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